You are here: Home » Companies » News
Business Standard

Shriram Transport plans Rs 2,000-cr NCDs

T E Narasimhan  |  Chennai 

Shriram Transport Finance Company (STFC) has planned to raise around Rs 2,000 crore via secured/unsecured non-convertible debentures (NCDs). There would be one or more tranches of public issues and/or private placements during the current financial year, said a senior official.

“The first tranche of Rs 300-500 crore is likely to hit the market in July,” said Umesh Revankar, managing director. He was talking on the sidelines of a court-convened meeting of equity shareholders, to get their approval for the scheme of arrangement between Shriram Holdings (Madras) Pvt Ltd and STFC.

The fund-raising plan comes at a time when the company is set for an overall growth this year of 12-15 per cent. As on March 31, STFC’s assets under management (AUM) stood at Rs 40,200 crore.

Revankar said STFC would be aggressive in used vehicles and the plan was to take operations into remote rural areas. “We plan to open a total of 400 rural networks, where we will be positioning our executives. And, 150 such locations are already added and we have started the operations. The basic idea is to acquire customers in the rural areas, which we feel is economically viable because most rural areas today have road connectivity and also mobiles,” he said.

On their increase in gross non-performing assets, quarter-on-quarter, and in provisioning expenses, he said, “We lend to retail customers and whenever the economy goes slow, it happens with some. We are confident we will get back to normal. We should be able to put additional push on our collection and we should be able to improve it, but it should remain in the range between 2.7 to 3 per cent (of all assets); it will not drastically change,” he said. “We continue with higher coverage to manage this.”

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, June 18 2012. 00:16 IST